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Wise vs. Bank Wire Transfer: How to Send Money to Canada Safely

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    Oliver Pelero
    Twitter

Introduction

When moving to Canada or sending money to support family, choosing the right money transfer method can save you hundreds of dollars in hidden fees and exchange rate markups.

The two main options are traditional Bank Wire Transfers (SWIFT) and modern digital remittance services like Wise (formerly TransferWise).

In this guide, we break down the costs and speeds of both methods. You can evaluate the impact of transfer fees on your budget with our Send Money to Canada Calculator.

1. Traditional Bank Wire Transfers (SWIFT)

Bank transfers send money through the secure SWIFT network of correspondent banks.

  • Hidden Markups: Banks rarely give you the real mid-market exchange rate. They add an exchange rate markup (often 2% to 5%), which is a hidden fee.
  • Fixed Fees: You will pay an outgoing wire fee (usually 20−20 - 50) plus an incoming wire fee at your Canadian bank (usually 10−10 - 20).
  • Correspondent Fees: Intermediary banks along the way may deduct additional fees, reducing the final amount your recipient receives.

2. Wise (Digital Transfer)

Wise operates by having bank accounts in multiple countries. Instead of sending money across borders, they use local deposits, which bypasses international transfer fees.

  • Real Mid-Market Rate: Wise gives you the exact exchange rate you see on Google, without any added markup.
  • Transparent Fee: You pay a single, small percentage-based fee that is shown upfront.
  • Speed: Transfers are often completed in a few hours or minutes, compared to 3–5 business days for banks.

Conclusion

For transfers below 50,000,digitalproviderslikeWisearealmostalwayssignificantlycheaperandfasterthantraditionalbanks.Forverylargesums(e.g.downpaymentsof50,000, digital providers like Wise are almost always significantly cheaper and faster than traditional banks. For very large sums (e.g. down payments of 100,000+), checking wire transfers can occasionally be competitive due to flat fees, but exchange markups must still be factored in.

To calculate the exact fees and compare the costs of sending funds, use the Send Money to Canada Calculator.

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